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Percentage Tax
Percentage Tax
Description
Percentage tax is a business tax imposed on persons, entities, or transactions specified under
Sections 116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as
amended, and as required under special laws.
Quarterly Percentage Tax under Sections 116 to 126 of the Tax Code, as amended
Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts,
partnerships, and corporations.
Persons, who are not VAT-registered, who sell goods, properties or services, whose annual gross sales
and/or receipts do not exceed three million pesos (Php3,000,000.00) and are exempt from value-
added tax (VAT) under Section 109 (BB) of the National Internal Revenue Code, as amended by
Republic Act (RA) No. 10963.
Persons who lease residential units where the monthly rental per unit exceeds fifteen thousand pesos
(Php15,000.00) but the aggregate of such rentals of the lessor during the year does not exceed three
million pesos (Php3,000,000.00)
Cars for rent or hire driven by the lessee, transportation contractors, including persons who
transport passengers for hire, and other domestic carriers by land for the transport of
passengers (except owners of bancas and owners of animal-drawn two-wheeled vehicle) and
keepers of garages
International air/shipping carriers doing business in the Philippines on their gross receipts
derived from transport of cargo from the Philippines to another country
Franchise grantees of –
radio and/or television broadcasting companies whose annual gross receipts for the
preceding year do not exceed Php 10,000,000.00 and did not opt to register as VAT
taxpayers, and
gas and water utilities.
Proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing exhibitions,
professional basketball games, Jai-Alai and racetracks, including videoke bars, karaoke bars,
karaoke televisions, karaoke boxes and music lounges as clarified under Revenue Memorandum
Circular (RMC) No. 18 – 2010
How to file/pay?
Documentary Requirements
Download the newly-revised BIR Form 2551Q pdf file format under the BIR
Forms-VAT/Percentage Tax Returns section of the BIR website.
Proceed to any Authorized Agent Bank (AAB)located within the territorial jurisdiction of the
Revenue District Office (RDO) where the taxpayer is registered and present the duly
accomplished BIR Form 2551Q and other requirements. If paying manually, present the
aforementioned documents together with BIR-prescribed deposit slip, and payment to the
respective AAB. The Quarterly Percentage Tax shall be paid at the time the return is filed by the
taxpayer.
In places where there are no AABs, the duly accomplished BIR Form 2551Q, together with the
required attachments and payment, shall be filed/paid with the Revenue Collection Officer
(RCO), thru the Mobile Revenue Collection Officers System (MRCOS) facility, or duly Authorized
Treasurer of the city or municipality where said business or principal place of business / where
the taxpayer is registered, who will issue an Electronic Revenue Official Receipt (eROR).
Receive copy of BIR Form 2551Q duly validated/stamp-received by the AAB/RCO/authorized City
or Municipal Treasurer.
Manual Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the
Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or
Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit
Card).
Note: "No payment" returns filed late will result on imposition by the RDO of penalties, which shall
be paid at the concerned AAB.
When to File/Pay
· Within twenty-five (25) days after the end of each taxable quarter
Source: https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html